The ongoing US government shutdown, which began on October 1st, has not altered expectations of monetary easing, with the options market showing strong bullish sentiment for Bitcoin. Despite the shutdown, the Bureau of Labor Statistics will release the September CPI on October 24th, ahead of the Federal Reserve's interest rate meeting on October 28-29, where a 25 basis point rate cut is anticipated. Fed Chairman Powell indicated that the balance sheet reduction might soon conclude, boosting market confidence. In the options market, call contracts dominate, accounting for nearly 60% of open interest, equivalent to approximately 246,000 BTC, with significant positions targeting strike prices of $140,000, $200,000, and $120,000, expiring on December 26th. Short-term options also show high activity, with notable trading volumes in call contracts expiring on October 31st. Weekly at-the-money implied volatility has increased from 30% to 40%, suggesting an expected orderly rise in Bitcoin's price. However, unexpected CPI increases or prolonged economic impacts from the shutdown could heighten short-term volatility.
Bitcoin Options Market Bullish Amid US Government Shutdown
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